83 FR 62646 - Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of Filing of Amendment No. 2 To Proposed Rule Change To Introduce Cboe Market Close, a Closing Match Process for Non-BZX Listed Securities Under New Exchange Rule 11.28
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 233 (December 4, 2018)
Federal Register Volume 83, Issue 233 (December 4, 2018)
| Page Range | 62646-62648 | |
| FR Document | 2018-26269 |
[Federal Register Volume 83, Number 233 (Tuesday, December 4, 2018)] [Notices] [Pages 62646-62648] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-26269] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-84670; File No. SR-BatsBZX-2017-34] Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of Filing of Amendment No. 2 To Proposed Rule Change To Introduce Cboe Market Close, a Closing Match Process for Non-BZX Listed Securities Under New Exchange Rule 11.28 November 28, 2018. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Exchange Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on October 4, 2018, the Bats BZX Exchange, Inc. (now known as Cboe BZX Exchange, Inc.) (``BZX'' or ``Exchange'') filed with the Securities and Exchange Commission (``SEC'' or ``Commission'') Amendment No. 2 to the proposed rule change as described in Item I below, which Item has been prepared by the Exchange and is reproduced below verbatim in Section I. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- The proposed rule change seeks to adopt Cboe Market Close, a closing match process for non-BZX Listed Securities. On January 17, 2018, after consideration of the record for the proposed rule change, the Division of Trading and Markets, pursuant to delegated authority,\3\ approved the proposed rule change, as modified by Amendment No. 1 (``Approval Order'').\4\ On January 31, 2018, pursuant to Commission Rule of Practice 430,\5\ NYSE Group, Inc. (``NYSE'') and The Nasdaq Stock Market LLC (``Nasdaq'') each filed petitions for review of the Approval Order. Pursuant to Commission Rule of Practice 431(e), the Approval Order is stayed by the filing with the Commission of a notice of intention to petition for review.\6\ On March 1, 2018, the Commission issued a scheduling order, pursuant to Commission Rule of Practice 431, granting the petitions for review of the Approval Order and providing until March 22, 2018 for any party or other person to file a written statement in support of or in opposition to the Approval Order.\7\ In statements filed with the Commission, two parties stated, among other arguments, that Cboe Market Close would cause BZX to violate Rule 201 of Regulation SHO.\8\ BZX subsequently filed Amendment No. 2 to the proposed rule change to address this comment. Because of this change, the Commission is publishing this notice to solicit comments on the proposed rule change, as amended, from interested persons. --------------------------------------------------------------------------- \3\ 17 CFR 200.30 3(a)(12). \4\ See Exchange Act Release No. 82522, 83 FR 3205 (January 23, 2018). \5\ 17 CFR 201.430. \6\ 17 CFR 201.431(e). See Letter from Secretary of the Commission to Christopher Solgan, Assistant General Counsel, Cboe Global Markets, Inc., dated January 24, 2018 (providing notice of receipt of notices of intention to petition for review of delegated action and stay of order), available at https://www.sec.gov/rules/sro/batsbzx/2018/sr-batsbzx-2017-34-letter-from-secretary-to-cboe.pdf. \7\ See Exchange Act Release No. 82794, 83 FR 9561 (March 6, 2018). On March 16, 2018, the Office of Secretary, acting by delegated authority, issued an order on behalf of the Commission granting a motion for an extension of time to file statements on or before April 12, 2018. See Exchange Act Release No. 82896, 83 FR 12633 (Mar. 22, 2018). \8\ See NYSE Statement in Opposition to the Division's Order Approving a Rule to Introduce Cboe Market Close, at 31-34 (April 12, 2018); Statement of the Nasdaq Stock Market LLC in Opposition to Order Granting Approval of a Proposed Rule Change, as Modified by Amendment No. 1, to Introduce Cboe Market Close, at 26 (April 12, 2018). --------------------------------------------------------------------------- I. Amendment No. 2 to SR-BatsBZX-2017-34 Cboe BZX Exchange, Inc. (``BZX'' or the ``Exchange'') is filing this Partial Amendment No. 2 to SR-BatsBZX-2017-34, which was originally filed with the Securities and Exchange Commission (the ``Commission'') on May 5, 2017 (the ``Proposal''). The Proposal was published for comment in the Federal Register on May 22, 2017, and approved by the Division of Trading and Markets pursuant to delegated authority on January 17, 2018.\9\ On January 24, 2018, the Commission stayed the Proposal,\10\ and the Proposal is currently pending Commission review. --------------------------------------------------------------------------- \9\ See Securities Exchange Act Release Nos. 80683 (May 16, 2017), 82 FR 23320 (May 22, 2017) (Notice); 82522 (January 7, 2018), 83 FR 3205 (January 23, 2017) (Approval Order) (SR-BatsBZX-2017-34). \10\ See Letter from Secretary of the Commission to Christopher Solgan, Assistant General Counsel, Cboe Global Markets, Inc., dated January 24, 2018. --------------------------------------------------------------------------- The Proposal seeks to introduce the Cboe Market Close, an innovative closing match process for non-BZX Listed Securities that is designed to match buy and sell Market-On-Close (``MOC'') orders at the official closing price for such security published by the primary listing market. The Exchange proposed the Cboe Market Close in response to interest from market participants, particularly buy-side firms, who seek an alternative to participation on the primary listing market's closing auction while still receiving an execution at the official closing price. The Exchange continues to believe that the proposed functionality promotes the maintenance of a free and open market because it would increase competition for order flow at the close, which is highly concentrated at the primary listing markets today, without impacting price discovery. The purpose of this amendment is to amend the Proposal at Interpretations and Policies .04 to BZX Rule 11.28, which would be a new rule that provides for the handling of short sale MOC orders that are designated for participation in the Cboe Market Close. Specifically, the Exchange proposes to reject short sale MOC orders entered pursuant to BZX Rule 11.28 in order to comply with its obligations under Rule 201 of Regulation SHO.\11\ MOC orders marked short exempt are not subject to the short sale circuit breaker restrictions under Regulation SHO, and would [[Page 62647]] therefore be accepted for participation in the Cboe Market Close. --------------------------------------------------------------------------- \11\ 17 CFR 242.201. --------------------------------------------------------------------------- 19b-4 and Exhibit 1 Changes 1. The Exchange proposes to add the following sentences to the purpose section of the Proposal at the end of the first paragraph on page 8 of the 19b-4 and page 21 of the Exhibit 1: All short sale MOC orders designated for participation in the Cboe Market Close must be identified as ``short'' or ``short exempt'' pursuant to Exchange Rule 11.19(a).\12\ MOC orders marked short will be rejected so as to maintain compliance with the Exchange's obligations under Rule 201 of Regulation SHO in the event a short sale circuit breaker is triggered and the official closing price determined by the primary listing market is not above the national best bid. MOC orders marked short exempt, which are not subject to short sale circuit breaker restrictions under Regulation SHO, will be accepted and processed in accordance with the proposed rules. --------------------------------------------------------------------------- \12\ Exchange Rule 11.19(a) provides that all short sale orders shall be identified as ``short'' or ``short exempt'' when entered into the System. --------------------------------------------------------------------------- 2. The Exchange proposes to add the following paragraphs to the basis section of the Proposal immediately prior to the Exchange's statement on burden on competition on page 14 of the 19b-4 and page 28 of the Exhibit 1: The Exchange also believes that the proposed language relating to short sale handling is consistent with the Act and the rules and regulations thereunder. Rules 201(b)(1)(i) and (ii) of Regulation SHO generally require that trading centers such as the Exchange establish, maintain, and enforce written policies and procedures reasonably designed to: (i) Prevent the execution or display of a short sale order of a covered security at a price that is less than or equal to the current national best bid (``price restriction'') if the price of that covered security decreases by 10% or more from the covered security's closing price; \13\ and (ii) impose this price restriction for the remainder of the day and the following day.\14\ --------------------------------------------------------------------------- \13\ The closing price is as determined by the listing market for the covered security as of the end of regular trading hours on the prior day. \14\ This price restriction applies when a national best bid for the covered security is calculated and disseminated on a current and continuing basis by a plan processor pursuant to an effective national market system plan. --------------------------------------------------------------------------- The Cboe Market Close contemplates the pairing of MOC orders at the MOC Cut-Off Time of 3:35 p.m. ET, and the ultimate execution of those orders at the official closing price determined by the closing auction of the primary listing market at 4:00 p.m. ET. As a result, it is possible that a short sale MOC order paired at the MOC Cut-off Time would not be eligible for execution at the ultimate execution price determined by the primary listing market when the closing auction is conducted. Should a short sale circuit breaker be triggered due to a 10% decline in the price of the security from the previous day's closing price, a short sale MOC order executed at 4 p.m. ET would be required to be executed above the national best bid. MOC orders paired in the Cboe Market Close, however, are entitled to an execution at the official closing price, which may be lower than, equal to, or above the national best bid. Thus, it is possible that the eventual execution of a short sale MOC order at 4 p.m. ET may violate the requirements of Rule 201(b)(1). Specifically, it would be a violation of Regulation SHO to execute a short sale MOC order at the official closing price if a short sale circuit breaker is triggered, either before or after the MOC Cut-off Time, and the official closing price is less than or equal to the national best bid. To prevent this result and maintain compliance with Rule 201 of Regulation SHO, the Exchange is proposing to reject all short sale MOC orders that are designated for participation in the Cboe Market Close. Rejecting short sale MOC orders will ensure that the Exchange is able to execute the MOC orders that are accepted and paired at the MOC Cut- off Time as contemplated by the Cboe Market Close. Furthermore, rejecting these orders would ensure that market participants are provided an opportunity to enter any short interest on the primary listing market, which may be able to re-price such interest to a permitted price if a short sale circuit breaker has been triggered.\15\ The Exchange therefore believes that the proposed handling of short sale MOC orders is consistent with the protection of investors and the public interest. --------------------------------------------------------------------------- \15\ See e.g., New York Stock Exchange LLC Rule 7.16(f)(5)(A), which permits the re-pricing of short sale orders during the duration of the short sale circuit breaker. --------------------------------------------------------------------------- In addition, Rule 201(b)(1)(iii)(B) of Regulation SHO provides that the Rule 201 policies and procedures described above must be reasonably designed to permit the execution or display of a short sale order of a covered security marked ``short exempt'' without regard to whether the order is at a price that is less than or equal to the current national best bid. As a result, MOC orders marked short exempt are not subject to the short sale price restrictions of Regulation SHO, and may be executed without regard to whether such execution is at a price that is less than or equal to the current national best bid. The Exchange therefore proposes to provide that orders marked short exempt will be accepted by the System. The Exchange will pair and execute these orders in the same manner as other MOC orders designated for participation in the Cboe Market Close. II. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change, as amended, is consistent with the Exchange Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-BatsBZX-2017-34 on the subject line. Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090. All submissions should refer to File Number SR-BatsBZX-2017-34. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's internet website (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for website viewing and printing in the Commission's Public Reference Room, 100 F Street NE, Washington, DC 20549 on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of such filing also will be available for inspection and copying at the principal offices of the Exchange. All comments received will be posted without change. Persons submitting comments are cautioned that we do not redact or edit personal identifying information from comment submissions. You should submit only information that you wish [[Page 62648]] to make available publicly. All submissions should refer to File Number SR-BatsBZX-2017-34, and should be submitted on or before December 26, 2018. By the Commission. Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-26269 Filed 12-3-18; 8:45 am] BILLING CODE 8011-01-P
![62646 Federal Register / Vol. 83, No. 233 / Tuesday, December 4, 2018 / Notices
internet website (http://www.sec.gov/ ‘‘Commission’’) Amendment No. 2 to proposed rule change, as amended, from
rules/sro.shtml). Copies of the the proposed rule change as described interested persons.
submission, all subsequent in Item I below, which Item has been
I. Amendment No. 2 to SR–BatsBZX–
amendments, all written statements prepared by the Exchange and is 2017–34
with respect to the proposed rule reproduced below verbatim in Section I.
change that are filed with the The proposed rule change seeks to Cboe BZX Exchange, Inc. (‘‘BZX’’ or
Commission, and all written the ‘‘Exchange’’) is filing this Partial
adopt Cboe Market Close, a closing
communications relating to the Amendment No. 2 to SR–BatsBZX–
match process for non-BZX Listed
proposed rule change between the 2017–34, which was originally filed
Securities. On January 17, 2018, after
Commission and any person, other than with the Securities and Exchange
those that may be withheld from the consideration of the record for the
proposed rule change, the Division of Commission (the ‘‘Commission’’) on
public in accordance with the May 5, 2017 (the ‘‘Proposal’’). The
provisions of 5 U.S.C. 552, will be Trading and Markets, pursuant to
delegated authority,3 approved the Proposal was published for comment in
available for website viewing and the Federal Register on May 22, 2017,
printing in the Commission’s Public proposed rule change, as modified by
and approved by the Division of Trading
Reference Room, 100 F Street NE, Amendment No. 1 (‘‘Approval Order’’).4
and Markets pursuant to delegated
Washington, DC 20549 on official On January 31, 2018, pursuant to
authority on January 17, 2018.9 On
business days between the hours of Commission Rule of Practice 430,5
January 24, 2018, the Commission
10:00 a.m. and 3:00 p.m. Copies of the NYSE Group, Inc. (‘‘NYSE’’) and The
stayed the Proposal,10 and the Proposal
filing also will be available for Nasdaq Stock Market LLC (‘‘Nasdaq’’) is currently pending Commission
inspection and copying at the principal each filed petitions for review of the review.
office of the Exchange. All comments Approval Order. Pursuant to
Commission Rule of Practice 431(e), the The Proposal seeks to introduce the
received will be posted without change.
Approval Order is stayed by the filing Cboe Market Close, an innovative
Persons submitting comments are
closing match process for non-BZX
cautioned that we do not redact or edit with the Commission of a notice of
Listed Securities that is designed to
personal identifying information from intention to petition for review.6 On
comment submissions. You should match buy and sell Market-On-Close
March 1, 2018, the Commission issued
submit only information that you wish (‘‘MOC’’) orders at the official closing
a scheduling order, pursuant to
to make available publicly. All price for such security published by the
Commission Rule of Practice 431,
submissions should refer to File primary listing market. The Exchange
granting the petitions for review of the proposed the Cboe Market Close in
Number SR–NYSEAMER–2018–50 and Approval Order and providing until
should be submitted on or before response to interest from market
March 22, 2018 for any party or other participants, particularly buy-side firms,
December 26, 2018. person to file a written statement in who seek an alternative to participation
For the Commission, by the Division of support of or in opposition to the on the primary listing market’s closing
Trading and Markets, pursuant to delegated Approval Order.7 In statements filed auction while still receiving an
authority.10 with the Commission, two parties execution at the official closing price.
Eduardo A. Aleman, stated, among other arguments, that The Exchange continues to believe that
Assistant Secretary. Cboe Market Close would cause BZX to the proposed functionality promotes the
[FR Doc. 2018–26272 Filed 12–3–18; 8:45 am] violate Rule 201 of Regulation SHO.8 maintenance of a free and open market
BILLING CODE 8011–01–P BZX subsequently filed Amendment No. because it would increase competition
2 to the proposed rule change to address for order flow at the close, which is
this comment. Because of this change, highly concentrated at the primary
SECURITIES AND EXCHANGE the Commission is publishing this listing markets today, without impacting
COMMISSION notice to solicit comments on the price discovery.
[Release No. 34–84670; File No. SR– The purpose of this amendment is to
3 17 CFR 200.30 3(a)(12).
BatsBZX–2017–34] amend the Proposal at Interpretations
4 See Exchange Act Release No. 82522, 83 FR
3205 (January 23, 2018). and Policies .04 to BZX Rule 11.28,
Self-Regulatory Organizations; Bats
5 17 CFR 201.430. which would be a new rule that
BZX Exchange, Inc.; Notice of Filing of
Amendment No. 2 To Proposed Rule
6 17 CFR 201.431(e). See Letter from Secretary of provides for the handling of short sale
Change To Introduce Cboe Market
the Commission to Christopher Solgan, Assistant MOC orders that are designated for
General Counsel, Cboe Global Markets, Inc., dated participation in the Cboe Market Close.
Close, a Closing Match Process for January 24, 2018 (providing notice of receipt of
Non-BZX Listed Securities Under New notices of intention to petition for review of Specifically, the Exchange proposes to
Exchange Rule 11.28 delegated action and stay of order), available at reject short sale MOC orders entered
https://www.sec.gov/rules/sro/batsbzx/2018/sr- pursuant to BZX Rule 11.28 in order to
November 28, 2018. batsbzx-2017-34-letter-from-secretary-to-cboe.pdf. comply with its obligations under Rule
7 See Exchange Act Release No. 82794, 83 FR
Pursuant to Section 19(b)(1) of the 9561 (March 6, 2018). On March 16, 2018, the
201 of Regulation SHO.11 MOC orders
Securities Exchange Act of 1934 Office of Secretary, acting by delegated authority, marked short exempt are not subject to
(‘‘Exchange Act’’),1 and Rule 19b–4 issued an order on behalf of the Commission the short sale circuit breaker restrictions
thereunder,2 notice is hereby given that granting a motion for an extension of time to file under Regulation SHO, and would
statements on or before April 12, 2018. See
on October 4, 2018, the Bats BZX Exchange Act Release No. 82896, 83 FR 12633 (Mar.
Exchange, Inc. (now known as Cboe 22, 2018). 9 See Securities Exchange Act Release Nos. 80683
BZX Exchange, Inc.) (‘‘BZX’’ or 8 See NYSE Statement in Opposition to the (May 16, 2017), 82 FR 23320 (May 22, 2017)
‘‘Exchange’’) filed with the Securities Division’s Order Approving a Rule to Introduce (Notice); 82522 (January 7, 2018), 83 FR 3205
Cboe Market Close, at 31–34 (April 12, 2018); (January 23, 2017) (Approval Order) (SR-BatsBZX–
and Exchange Commission (‘‘SEC’’ or 2017–34).
Statement of the Nasdaq Stock Market LLC in
10 See Letter from Secretary of the Commission to
Opposition to Order Granting Approval of a
10 17 CFR 200.30–3(a)(12). Proposed Rule Change, as Modified by Amendment Christopher Solgan, Assistant General Counsel,
1 15 U.S.C. 78s(b)(1). Cboe Global Markets, Inc., dated January 24, 2018.
No. 1, to Introduce Cboe Market Close, at 26 (April
2 17 CFR 240.19b–4. 12, 2018). 11 17 CFR 242.201.
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![62648 Federal Register / Vol. 83, No. 233 / Tuesday, December 4, 2018 / Notices
to make available publicly. All any comments it received on the liquidity equal to or exceeding 0.40% of
submissions should refer to File proposed rule change. The text of these total Consolidated Volume during a
Number SR–BatsBZX–2017–34, and statements may be examined at the month. The proposed new fee is similar
should be submitted on or before places specified in Item IV below. The to existing fees assessed for displayed
December 26, 2018. Exchange has prepared summaries, set orders, which require a certain level of
By the Commission. forth in sections A, B, and C below, of total Consolidated Volume added
Eduardo A. Aleman, the most significant aspects of such during a month to qualify; however, the
statements. proposed new fee will also include a
Assistant Secretary.
qualification requirement that a member
[FR Doc. 2018–26269 Filed 12–3–18; 8:45 am] A. Self-Regulatory Organization’s
remove a certain level of total
BILLING CODE 8011–01–P Statement of the Purpose of, and
Consolidated Volume during the month.
Statutory Basis for, the Proposed Rule
Change Third Change
SECURITIES AND EXCHANGE The purpose of the third change is to
1. Purpose
COMMISSION adopt a new $0.0020 per share executed
The purpose of the proposed rule
[Release No. 34–84668; File No. SR–BX– fee for non-displayed orders (other than
change is to amend the Exchange’s
2018–057] orders with Midpoint pegging). To
transaction fees at Equity 7, Section 118
qualify for the proposed fee, a member
Self-Regulatory Organizations; Nasdaq to: (i) Eliminate a fee assessed for
must meet the Qualified Market Maker
BX, Inc.; Notice of Filing and displayed orders; (ii) adopt a new fee for
Program qualification criteria and add
Immediate Effectiveness of Proposed displayed orders; (iii) adopt a new fee
0.10% of total Consolidated Volume of
Rule Change To Amend the for non-displayed orders; and (iv) adopt
non-displayed liquidity. The proposed
Exchange’s Transaction Fees at Equity a Qualified Market Maker Program and
new fee is similar to the certain existing
7, Section 118 a related fee.3
fees assessed for non-displayed orders,
November 28, 2018.
First Change which requires a certain level of total
The purpose of the first change is to Consolidated Volume added during a
Pursuant to Section 19(b)(1) of the
eliminate a $0.0018 per share executed month to qualify; however, the
Securities Exchange Act of 1934
fee assessed for displayed orders. To proposed new fee will also include a
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
qualify for the current fee, a member qualification requirement that a member
notice is hereby given that on November
must add liquidity equal to or exceeding also qualify for the Qualified Market
16, 2018, Nasdaq BX, Inc. (‘‘BX’’ or
the member’s Growth Target. The Maker Program. The Qualified Market
‘‘Exchange’’) filed with the Securities
Growth Target is the liquidity the Maker Program, which is being
and Exchange Commission (‘‘SEC’’ or
member added in January 2017 as a proposed herein and is discussed
‘‘Commission’’) the proposed rule
percent of total Consolidated Volume 4 immediately below, will require a
change as described in Items I, II, and
plus 0.04% of total Consolidated member to provide market-improving
III, below, which Items have been
Volume. The fee tier has not provided behavior in the form of quoting and
prepared by the Exchange. The
adequate incentive to attract liquidity to provision of total Consolidated Volume.
Commission is publishing this notice to
solicit comments on the proposed rule the Exchange. Accordingly, the Fourth Change
change from interested persons. Exchange is proposing to eliminate the
The purpose of the fourth change is to
fee.
I. Self-Regulatory Organization’s adopt a Qualified Market Maker
Statement of the Terms of Substance of Second Change (‘‘QMM’’) Program and a related fee. A
the Proposed Rule Change The purpose of the second change is QMM is a member that makes a
to adopt a new $0.0016 per share significant contribution to market
The Exchange proposes to amend the
executed fee assessed for displayed quality by providing liquidity at the
Exchange’s transaction fees at Equity 7,
orders. To qualify for the proposed fee, national best bid and offer (‘‘NBBO’’) in
Section 118 to: (i) Eliminate a fee
a member must add liquidity equal to or a large number of securities for a
assessed for displayed orders; (ii) adopt
a new fee for displayed orders; (iii) exceeding 0.06% of total Consolidated significant portion of the day. A QMM
adopt a new fee for non-displayed Volume during a month, and remove may be, but is not required to be, a
orders; and (iv) adopt a Qualified registered market maker in any security;
Market Maker Program and a related fee. 3 The Exchange initially filed the proposed thus, the QMM designation does not by
The text of the proposed rule change pricing changes on November 1, 2018 (SR–BX– itself impose a two-sided quotation
is available on the Exchange’s website at
2018–053). On November 6, 2018, the Exchange obligation or convey any of the benefits
withdrew that filing and replaced it with SR–BX– associated with being a registered
http://nasdaqbx.cchwallstreet.com/, at 2018–054, which corrected a description of the
the principal office of the Exchange, and quoting obligation under the QMM Program rule market maker. The designation will,
at the Commission’s Public Reference and made a technical correction to the purpose however, reflect the QMM’s
Room.
discussion. On November 16, 2018, the Exchange commitment to provide meaningful and
withdrew SR–BX–2018–054 and submitted this consistent support to market quality and
II. Self-Regulatory Organization’s filing, which makes technical changes and provides
further description of the QMM Program. price discovery by extensive quoting at
Statement of the Purpose of, and 4 The term ‘‘Consolidated Volume’’ shall mean the NBBO in a large number of
Statutory Basis for, the Proposed Rule the total consolidated volume reported to all securities. Thus, the program is
Change consolidated transaction reporting plans by all designed to attract liquidity both from
exchanges and trade reporting facilities during a
In its filing with the Commission, the month in equity securities, excluding executed
traditional market makers and from
Exchange included statements orders with a size of less than one round lot. For other firms that are willing to commit
concerning the purpose of and basis for purposes of calculating Consolidated Volume and capital to support liquidity at the NBBO.
the extent of a member’s trading activity the date In return for providing the required
the proposed rule change and discussed of the annual reconstitution of the Russell
Investments Indexes shall be excluded from both
contribution of market-improving
1 15 U.S.C. 78s(b)(1). total Consolidated Volume and the member’s liquidity, a QMM will be assessed a
2 17 CFR 240.19b–4. trading activity. See Equity 7, Section 118. lower rate for executions of displayed
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Document Created: 2018-12-04 00:42:28
Document Modified: 2018-12-04 00:42:28
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 83 FR 62646 |
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